Purchase and sale of real estate - Commercial law

7.2. Purchase and sale of real estate

Under the contract of sale of real estate (contract of sale of real estate) the seller undertakes to transfer to the buyer's property a land plot, building, structure or other real property property.

The parties to the contract for the sale of real estate can be any individual or legal entity, including business entities. The contract for the sale of real estate is concluded in writing by drawing up one document signed by the parties. Failure to comply with the form of the contract entails its invalidity.

Specific features of real estate (special value, non-consumables in the process of use, etc.) cause the need for special rules governing the participation of such objects in the property turnover. Thus, the Civil Code of the United States provides for a number of rules regarding mandatory state registration of property rights and other real rights to immovable property (state registration is not subject to the contract of sale of real estate, but transfer of ownership of property under such a contract from the seller to the buyer). >

For transactions with land plots, including the sale of land, the US Civil Code applies only to the extent that their turnover is permitted by land law.

Essential conditions of the contract of sale and purchase of real estate are the conditions on the subject and price. The condition on the subject of the contract must contain such data that allows you to determine definitely the immovable property subject to transfer to the buyer under the contract, i.e., data allowing to determine the location of the immovable property on the relevant land plot or as part of other real estate. If there are no such data in the contract, the condition for immovable property is considered inconsistent, and the contract is not concluded.

The basic rules governing the rights of the parties in respect of the land plot on which the property is located, depending on the specifics of the subject matter and the terms of the contract for its sale, are given in Table. 7.1.

The property sale contract must provide for the price of this property. Unless otherwise provided by the law or the contract for the sale of real estate, the price of the building, structure or other immovable property located on the land plot established therein includes the price of the relevant part of the land plot transferred with this immovable property or the right to lease it. In cases where the price of real estate in the contract for the sale of real estate is set at one point flat -

Table 7.1

Features of the subject and terms of the sales contract

Property

The rule governing the rights of the parties

The contract defines the rights to a part of the land plot owned by the seller, transferred to the buyer of real estate

Simultaneously with the transfer of ownership of the purchased property, the buyer is transferred to the right to the part of the land that is occupied by real estate and is necessary for its use: ownership, lease rights

The contract does not specify the right of the buyer of real estate to the relevant land (owned by the seller)

The buyer gets ownership of the part of the land that is occupied by real estate and is necessary for its use.

The land plot does not belong to the seller of real estate on the right of ownership

For the sale of real estate, the consent of the owner of this land plot is not required if such a sale does not contradict the terms of use of the land plot established by law or the contract. The buyer acquires the right to use the relevant part of the land plot on the same terms and to the same extent as the real estate seller

The land and the property on it belong to the same person

The alienation of a land plot without any real estate on it is not allowed

The property is located on the land owned by several persons on the right of ownership

Alienation of a share in the ownership of real estate entails the alienation of a share in the ownership of a land plot, the size of which is proportional to the share in the ownership of the property

The property is located on a limited land plot and belongs to one person

Alienation of real estate is carried out together with the land plot, if the federal law allows to provide such a land plot in the ownership of citizens and legal entities

Square or other indicator of its size, the total price of such immovable property, subject to payment, is determined on the basis of the actual amount of the real estate transferred to the buyer. In the absence in the agreement agreed upon by the parties in writing of the conditions for the price of real estate, the contract for its sale is considered to be unconnected. In this case, the price determination rules provided for the other contracts do not apply.

Transfer of property by the seller and acceptance by the buyer of the are carried out according to the transfer certificate or other transfer document. Unless otherwise provided by law or by contract, the obligation of the seller to transfer the property to the buyer is considered fulfilled after the delivery of this property to the buyer and signing by the parties of the relevant transfer document. Evasion of one of the parties from signing the document on the transfer of real estate on the terms stipulated by the contract is considered a refusal of the seller accordingly from the obligation to transfer the property, and the buyer - the obligation to take the property.

Acceptance of the buyer of real estate that does not comply with the terms of the contract for the sale of real estate, including in the case when such a discrepancy is stipulated in the document on the transfer of real estate, is not grounds for exempting the seller from liability for improper performance of the contract. If the seller transfers the property to the buyer that does not comply with the terms of the contract for the sale of real estate on its quality, the relevant rules of the contract of sale, apply, except for the provisions on the right of the buyer to demand replacement of goods of improper quality for the goods that correspond to the contract.

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